As Bitcoin (BTC) retests the $90,000 price level after tumbling almost 9% in the past week, institutional investors and corporations are seizing the pullback as an opportunity to increase their BTC reserves. Business intelligence firm MicroStrategy is one such entity, having purchased 2,530 BTC during the ongoing market downturn.
MicroStrategy Buys The Bitcoin Dip
Undeterred by the crypto market’s decline, MicroStrategy has added more BTC to its holdings for the 10th consecutive week. According to an announcement by the firm’s CEO, Michael Saylor, MicroStrategy acquired an additional 2,530 BTC for $243 million at an average price of $95,972, inclusive of fees and other expenses.
The latest purchase brings MicroStrategy’s total Bitcoin holdings to over 450,000 BTC, acquired for a cumulative $28.2 billion at an average price of $62,691 per BTC. Saylor also revealed that on a year-to-date (YTD) basis, MicroStrategy achieved a BTC yield of 0.32%.
For the uninitiated, BTC Yield is a key-performance indicator (KPI) that is used to assess the strategy used to acquire Bitcoin. In MicroStrategy’s context, the firm financed its BTC purchase by issuing additional shares of its common stock.
Between January 1 and January 12, MicroStrategy sold 710,245 shares, raising approximately $243 million. These proceeds funded the Bitcoin purchase, propelling the company’s BTC holdings to a new all-time high (ATH).
Despite this strategic acquisition, MicroStrategy’s stock price did not see a positive impact. At the time of writing, MSTR is trading at $312.16, down 4.8% on the day. However, MSTR is up an impressive 540% over the past year, reflecting its strong correlation with Bitcoin’s price trajectory in 2024.
Alongside MicroStrategy, medical healthcare manufacturing firm Semler Scientific announced its purchase of 237 BTC for $23.3 million – bought between December 16 and January 10 – at an average price of $98,267.Â
Semler Scientific now holds 2,321 BTC, acquired for a total of $191.9 million at an average price of $82,687 per BTC. The company financed its latest BTC purchase through proceeds from its at-the-market (ATM) offering and operating cash flow.
It should be recalled that Semler Scientific started its BTC acquisition journey in May 2024 when it added 581 BTC to its balance sheet. In December 2024, the company scooped an additional 303 BTC to increase its cryptocurrency reserves.
Will BTC Recover From Price Slump?
After hitting a new ATH of $108,135 on December 17, BTC has been stuck in the $90,000 to $100,000 price range. The recent crypto market pullback has pushed Bitcoin to the lower end of this range, with the potential for a breakdown to $84,000 if the $90,000 support level fails to hold.
While the purchases by MicroStrategy and Semler Scientific demonstrate corporate confidence in Bitcoin, crypto entrepreneur Arthur Hayes cautioned that further corrections could occur ahead of U.S. President-elect Donald Trump’s inauguration on January 20.
Nevertheless, some analysts remain optimistic. Recent Elliott Wave analysis suggests that after the current correction, BTC could climb as high as $210,000. At press time, BTC is trading at $92,277, down 3% in the past 24 hours.
Featured Image from Unsplash.com, Charts from Yahoo! Finance and TradingView.com
